by Patricia Nicole S. Quiboloy
Benjamin Franklin said: "He who goes a borrowing, goes a sorrowing." With the issuance of Revenue Memorandum Circular 62-2016 dated June 13, 2016, it would seem the general borrowing public will have to go into more sorrowing.
GRT, or gross receipt tax, is a percentage tax imposed on gross receipts derived from sources within the Philippines by banks and nonbank financial intermediaries, among others.
In the case of banks, GRT at the rate ofone percent is levied on interest, commissions and discounts from lending activities, and income from financial instruments, as well as royalties, rentals of properties, profits from exchange, and all other items treated by the bank as gross income are subject to seven percent GRT.
© 2020 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.